Aspects of incidental credit in terms of the National Credit Act 34 of 2005

Abstract

An incidental credit agreement is one of the credit transactions to which the National Credit Act 34 of 2005 (“the Act”) applies. It is clear from the definition of “incidental credit agreement” that such a transac- tion entails the provision of goods or services. It does not matter whether the goods or services have already been delivered to the consumer or whether they still have to be provided to the consumer over a period of time. The latter possibility presupposes an undertaking by the credit provider to supply goods or services to the consumer over a period of time in the future. The impression is therefore created that the credit provider may bill the consumer (an account was tendered – my emphasis) for goods or services that have not yet been provided.